Utility says clean energy standards behind proposed rate hike

[February 08, 2023]  By Kevin Bessler | The Center Square

(The Center Square) – Ameren Illinois says the transition to clean energy is behind price increases proposed to the Illinois Commerce Commission.

The company is asking for more than a $160 million gas rate hike and a four-year $435 million electric rate increase.

Ameren Communications Director Tucker Kennedy said the state’s transition to clean energy sources is partly behind the rate increases.

“As we bring on more solar and wind energy sources onto the grid, it is our job to make sure that grid is able to handle those new energy sources,” Kennedy told The Center Square.

Illinois lawmakers passed the Climate and Equitable Jobs Act in 2021, which states that Illinois will have carbon-free power by 2045. It also requires electric utility companies like Ameren serving more than a half million customers to file a multi-year grid plan with the ICC.

Abe Scarr, Illinois director for the Illinois Public Interest Research Group, said every penny Ameren is asking for should be scrutinized.

“I'm a supporter of the clean energy transition and think electric utilities do need to make investments for that, but just because that is what they say doesn’t mean they should have a blank check and they should be able to raise rates as much as they want,” Scarr told The Center Square.

The rate increase filing starts an 11-month process in which the ICC will analyze the request. Illinoisans are also welcome to weigh in on the rate increase filing.

“This will undergo a really thorough regulatory review, so state regulators with the Illinois Commerce Commission will review literally every dollar that we have requested,” Kennedy said.

A 2013 law passed by the Illinois General Assembly allows major gas utilities to add a Qualified Infrastructure Plant, or QIP, fee to bills. It covers certain costs associated with replacing natural gas pipes and other work on the utilities’ gas delivery system. Under the law, the surcharge is slated to sunset on Dec. 31, 2023.

Last June, an average Ameren customer saw about a $50 increase in their monthly power bills. The company projected a more than 25% increase in energy costs for customers this winter.

The Ameren rate hike request follows similar requests from other utilities, including from ComEd, Peoples Gas, and Nicor Gas.

“It is really important that regulators take a very close look at the proposals to ensure that the investments the utilities are proposing are actually worthwhile,” Scarr said.

Kevin Bessler reports on statewide issues in Illinois for the Center Square. He has over 30 years of experience in radio news reporting throughout the Midwest.